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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Hotel Shilla to improve next year’

  • PUBLISHED :October 17, 2017 - 13:59
  • UPDATED :October 17, 2017 - 13:59
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[THE INVESTOR] Hotel Shilla will see earnings improvement next year, said Hana Financial Investment on Oct. 17, upgrading the recommendation to a “buy” from a “hold” and raising the target price to 76,000 won (US$67.15) from 60,000 won.




Its third-quarter revenue and operating profit will come in at 889 billion won and 23 billion won, respectively. Next year, it will come out of a three-year long slump and regain earnings momentum, said analyst Park Jong-dae.

Revenue from downtown duty-free stores will jump 10 percent from this year and the new branches at airports in Incheon and Hong Kong will boost revenue by more than 600 billion won, he explained. 

As downtown duty-free stores recover amid eased competition, its operating profit will return to 140 billion won, and operating loss from airport outlets will shrink, forecast the analyst. 

Profits from the hotel sector will take a leap as it graduates from a five-year depreciation period following the revamp in 2013, added Park. 

By Hwang You-mee (glamazon@heraldcorp.com)

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